Taiwan’s financial authorities have published a draft framework for stablecoin issuance that would permit a wider range of entities, including certain nonbank companies, to enter the market under a licensing system.
The proposal sets out who can apply, how tokens must be backed, and what operational safeguards issuers would need to maintain. Officials will collect feedback on the draft for 40 days before moving to finalize the rules under the timetable tied to the related law.
Who could qualify to issue stablecoins
The draft regulations, titled the Regulations Governing Permission and Administration of Stablecoin Issuance, identify several categories of potential license applicants. These include banks, financial holding companies, companies invested in by banks, and other entities that financial regulators may designate.
A notable feature of the proposal is that it would also allow nonbank businesses to issue stablecoins. To qualify, a nonbank applicant would need at least NT$300 million in capital and would be limited to operating only stablecoin issuance and redemption services.
Strict backing and peg requirements
Under the draft, any stablecoin issued under the regime would need to be pegged on a one-to-one basis either to the Taiwan dollar or to a single foreign currency. The rules do not describe a broader multi-currency structure in the proposal outlined by authorities.
Issuers would also be required to maintain reserve assets equal to or greater than the amount of stablecoins in circulation. In addition, they would be subject to regular audits, a requirement aimed at verifying that backing assets remain in place.
Controls on operations and compliance
Beyond capital and reserve requirements, the proposed framework would impose operational and compliance obligations on issuers. Firms would need to establish internal-control arrangements and information-security systems as part of their ongoing management of the tokens.
The draft also requires compliance with anti-money laundering rules. Authorities said issuers must have a system capable of quickly restricting the transfer or disposal of stablecoins when such action is requested by the relevant authorities.
Consultation period before final rules
Taiwan’s authorities said they plan to gather market and public feedback on the draft rules for 40 days. After that consultation period, the regulations are expected to be finalized in line with the implementation schedule of the related law.
For now, the proposal outlines the confirmed direction of travel rather than a finished regime. The next formal step is the completion of the feedback process and the publication of the final rules that will govern who can issue stablecoins and under what conditions.
Source: en.bloomingbit.io